Reported Energy and Cost Savings from the DOE ESPC Program (original) (raw)
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The U.S. energy service company (ESCO) industry has a well-established track record of delivering substantial energy and dollar savings in the public and institutional facilities sector, typically through the use of energy savings performance contracts (ESPC) ). This ~$6.4 billion industry, which is expected to grow significantly over the next five years, may play an important role in achieving demand-side energy efficiency under local/state/federal environmental policy goals. To date, there has been little or no research in the public domain to estimate electricity savings for the entire U.S. ESCO industry. Estimating these savings levels is a foundational step in order to determine total avoided greenhouse gas (GHG) emissions from demand-side energy efficiency measures installed by U.S. ESCOs.
This paper analyzes current policies and practices related to the incorporation of non-energy measures (NEMs) and their benefits to energy saving performance contract (ESPC) projects implemented by the U.S. energy service company (ESCO) industry. Previous research by our team has found that projects in the public and institutional sector are increasingly using ESPCs to address various non-energy-related needs (e.g., roof replacement). Unfortunately, there is no consistent guidance on methodologies for incorporating non-energy benefits (NEBs) into the cost/benefit analyses of projects. This paper presents the results of an in-depth review of state-by-state and federal legislation of the incorporation of non-energy benefits, including measures and benefits allowed and restrictions that apply. Case studies indicate that the value of NEBs can be as much as 40% or more of the total economic savings generated by an ESPC project. However, there is significant variation across regions and l...
Apprising Energy Efficiency Projects and Relevance to ESCOs
Advances in Economics and Business, 2016
Currently, India is facing an energy crisis and lots of efforts are being put in order to reduce this widening gap between energy demand and supply. One of the most cost effective ways of reducing this gap is by implementing Energy Efficiency (EE) projects. These projects have a very high potential in India as it is estimated that it can generate energy savings worth $ 730 million per year. But, this is not being utilised properly due to various hurdles. One of the major obstacles is financing of these EE projects. Most financial institutions are not familiar with the aspects of EE projects. Also, weak credit strength of Energy Service Company (ESCOs) and perceived lack of collateral or guarantees also hinder the implementation of such projects. Added to this, financial institutions lack the appraisal capacities required for these projects. In this paper, appraising of EE projects is discussed and the benefits of financing EE projects are highlighted. Also, the paper discusses certain schemes and policies that could be implemented in order to make these projects more attractive to the Financial Institutions. Five Basic methods of appraisal i.e. promoter appraisal, technical appraisal, financial appraisal, environmental appraisal and legal appraisal are necessary when it comes to EE projects. In addition, different perspectives of different stakeholders like Promoters, Lenders, Government, ESCOs, etc. are observed and understood in this paper. Also, the paper shall discuss in the detail about new financing mechanisms i.e. PRGF (Partial Risk Guarantee Fund) and VCF (Venture Capitalist Fund) and also along with ESCOs ability to benefit from these financing mechanisms.
2003
As part of an effort to quantify the effects of the U.S. Department of Energys State Energy Program (SEP), staff at Oak Ridge National Laboratory (ORNL) developed a set of metrics to describe key activities within 20 distinct program areas. All states, territories, and the District of Columbia were contacted in late 2001 and asked to provide data on their SEP activities, and 20 statesrepresenting half of the entire U.S. populationresponded by August 31, 2002. Using the best of the available recent literature and drawing on their own previous research on SEP metrics, ORNL staff developed per-unit energy-savings estimates for at least one metric in each of 14 program areas. Those savings coefficients were multiplied by state-provided information on the number of activities undertaken to calculate energy savings. Estimates of cost savings and emissions reductions were then generated from the savings numbers. Approximately 85 percent of the total energy savings occurred in five progr...